On July 20, 2010, new legislation was introduced in the Senate to provide investment tax credit ("ITC") to energy storage facilities. Senate Bill No. 3617, the Storage Technology of Renewable and Green Energy Act of 2010 (the "STORAGE 2010 Act"), would offer up to $1.5 billion in tax credits to storage projects that are connected to the U.S. electric grid.
This legislation is designed to promote intermittent energy sources, including wind and solar power, while reducing energy demands during peak hours and contributing to a smart grid that is more reliable overall in order to modernize the U.S. electric grid and meet the nation's clean energy goals. The STORAGE 2010 Act would help meet these goals by improving the efficiency, flexibility, and reliability of the nation's electric grid, and by making energy storage technologies more affordable for homes and businesses.
The STORAGE 2010 Act would offer ITCs for two categories of energy storage projects: (1) storage systems connected to the electric grid, and (2) on-site energy storage for businesses and homes.
Grid-Connected Energy Storage
The STORAGE 2010 Act would provide a 20 percent ITC for facilities that store energy for delivery or use at a later time, provided that those facilities are connected to the U.S. electric grid. This ITC is capped at $30 million per qualifying project.
In allocating these tax credits, the Secretary of Energy would be required to select only those projects with a reasonable expectation of commercial viability and projects that represent a variety of technologies, applications, and project sizes. Priority would be given to projects that provide the greatest increase in reliability or economic benefit, that enable the greatest improvement in integration of renewable resources with the grid, or that enable the greatest increase in efficiency in operation of the grid.
On-Site Energy Storage
The legislation would also provide a 30 percent investment tax credit to businesses and homeowners for on-site storage projects. Those ITCs would be capped at $1 million annually per qualifying project.
If this bill becomes law, the available tax credits may create critical opportunities for your business. For further information about the bill, including its status, please contact any of the attorneys listed.
Day Pitney Alert
Flossie Davis, Thomas Havens and Jennifer Galiette wrote an article, "NY Retail Electricity Order Vacated — For Now," for Law360. The article is about the recent decision by the Supreme Court for the County of Albany, New York, to vacate key directives of the New York Public Service Commission (PSC) in its "Order Resetting Retail Energy Markets and Establishing Further Process" issued on Feb. 23, also known as the PSC reset order.
Day Pitney Alert
Jennifer Galiette wrote an article, "State Strategy to Focus on Energy, Building Processes and Transportation," for The Connecticut Law Tribune. The article is about the Connecticut Department of Energy and Environmental Protection's (DEEP) announcement in May that it is beginning to develop a new statewide Comprehensive Energy Strategy (CES) for Connecticut.
On July 12, Day Pitney partner Beth Barton, President of the New England Women in Energy and the Environment (NEWIEE), will welcome attendees at NEWIEE’s second annual panel in the "New England Women Shaping the Agenda in Energy and Environment" series. This year, this event will take place at Tufts University in the ASEAN Auditorium at The Fletcher School in Medford, Massachusetts. The panel, including Maryrose Sylvester, President and CEO of Current, Powered by GE; Cheryl Warren, National Grid USA Board Director and Innovation Strategist; and Cynthia Arcate, President and CEO of PowerOptions, will discuss the business behind getting to clean energy and environment. Professor Barbara Kates-Garnick of the Fletcher School and Center for International Environment and Resource Policy will be the moderator for the panel discussion. Registration is open for the event on NEWIEE’s website.
Joe Fagan was quoted in an article, "Pipeline Fights May Determine Scope Of Climate Reviews," in Law360. The article is about how an increase in legal challenges by environmental groups claiming that the Federal Energy Regulatory Commission must examine the climate change impacts of increased natural gas drilling before approving pipelines could help define the boundaries of a landmark 2004 U.S. Supreme Court ruling that limited the scope of federal environmental reviews to actions within an agency's authority.
Joe Fagan was quoted in an article, "NY Nuke Plant Subsidies Will Likely Face Legal Battle," in Law360. The article is about the challenges that nuclear plant subsidies offered by New York state in its newly announced clean energy standard will likely face due to a U.S. Supreme Court's recent decision.
Harold Blinderman was quoted in a Law360 article,"EPA's 40-Year Battle For Water Cooling Regs: A Cheat Sheet," which reviewed the status of litigation currently before the Second Circuit Court of Appeals challenging federal environmental regulations regarding the usage of cooling water by existing power plants and factories.
Hartford, Conn, June 9, 2016 - Day Pitney LLP is pleased to announce that David Doot has been selected as an Energy & Environmental Trailblazer by The National Law Journal, which profiles the top 50 business leaders in the energy and environmental space.
Jennifer Galiette has been elected Chair of the Energy, Public Utility and Communications Law Section of the Connecticut Bar Association for a term of two years. In her new role, she will be in charge of planning Section meetings and organizing educational and professional events for the Section’s more than 100 members. Galiette also serves as a member of the Section’s Executive Committee. She has been involved with the organization for over seven years, and has previously served as Treasurer, Secretary and Vice Chair of the Section.